ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Profit and variances
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Inflows and outflows
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Costs & revenue
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Favorable and unfavorable variances
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Detailed explanation-1: -How to Create a Profit Center Group? Use the T-code KCH1 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center Group → Create. Enter the Controlling Area in which the Profit Center is to be created. Enter the Unique Profit Center Group Id as shown below and press Enter.
Detailed explanation-2: -A profit center is a branch or division of a company that directly adds or is expected to add to the entire organization’s bottom line. It is treated as a separate, standalone business, responsible for generating its revenues and earnings.
Detailed explanation-3: -Step 1 − To assign Cost Center to profit center, navigate to SPRO → SAP Reference IMG → Controlling → Profit Center Accounting → Assignments of Account Assignment objects to Profit Center → Assign Cost Centers → Execute.
Detailed explanation-4: -Which of the following best identifies a profit center? Answer: D. A new car sales division for a large local auto agency.